A Flexible Savings Account (FSA) plan allows you to put money into an account at the beginning of the calendar year that can be used for medical expenses. This amount is not subject to federal tax as you pay medical expenses during the year, you are reimbursed by the administrator of the FSA until the money is exhausted. From that point on, you must pay your medical expenses out of your own pocket. On the other hand, if you put more money into your FSA than the medical expenses you incur, this extra money is lost to you. The goal of this study is to identify the optimal amount of FSA contribution to maximize the expected salary after tax and medical expenses. Your annual salary is $70,000 and your federal income tax rate is 30%. Assume that you put $2,000 into your FSA at the beginning of the year and that medical expenses in a year are normally distributed with mean $2,000 and a standard deviation of $500. A static model is given in the IA5_Q1_FSA_template.xlsx. Note that the output is the amount of money left to you after i) putting money into the FSA, ii) paying tax, iii) paying out of pocket medical expenditure. Make sure you understand all the calculations in the model.A) Determine the input variables of this problem:What is(are) the input random variable(s)? What is(are) the decision variable(s)? B) Add the simulation functionality to the template to output the salary after tax and health care costs (add randomness to any random variables and designate the appropriate outputs). Run the simulation with 1000 replications. Copy and paste the graph of the distribution of salary after tax and health care costs. Explain the shape of the distribution. Particularly, can you explain the spike on the right and the smooth distribution on the left?C) Now use RiskSimTable to experiment with the amount of money put in the FSA. Set the range of the amount of FSA contribution to [$0, $4000]. The sections shaded in yellow are intended to assist you organize the information. Also, add RiskSimTable function to the model and update the number of simulations. Copy and paste your table. Based on the simulation results, answer the following questions.If you are risk-neutral, how much would you contribute to your FSA? Explain your answer.If you are risk-averse, how much would you contribute to your FSA? Explain your answer.

Case Study Review 1 Respond to the following case scenario by applying topics and theories learned from the current module week: Scenario-A Closed System, Rational Model: Jim Beam fighting citation for bathroom-break policy The Jim Beam bourbon-making plant in Bullitt County is fighting a state citation criticizing its policy on bathroom breaks for employees. Since October, line workers at the plant have been permitted to use the restroom only during lunch and two other times during the day - one before lunch and one after. They also are allowed one unscheduled toilet break per day, and can be disciplined for taking more, starting with a warning and escalating to dismissal after six incidents. The old policy allowed workers to rotate off the line for short, unscheduled breaks throughout the day, with no set number. The company changed the policy after it concluded that workers were taking advantage of the liberal break policy. The Labor Cabinet, in a citation issued in November, said Jim Beam is violating a federal labor law requiring employers to provide restroom facilities to employees. Jim Beam is appealing the citation. The cabinet did not propose a fine. A hearing on the citation is scheduled next week in Bardstown. The distiller has filed a memo with the Labor Cabinet, saying it "observed, documented and analyzed break habits of the employees" and consulted with a urologist to make sure that the new policy would be reasonable." The company said people with medical conditions get more leeway. But the United Food and Commercial Workers union that represents the approximately 100 production-line workers said the urologist determined the breaks were not motivated by need, but most likely by "smoking habits." The union said 45 workers have been disciplined, some workers have begun wearing protective undergarments and others have urinated on themselves because they were afraid to leave the line. "It's embarrassing to be a 36-year-old woman and have to justify your need to go to the bathroom," said Krystal Ditto, who said she has been disciplined five times and is one unscheduled bathroom visit away from losing her job. "Once you get the feeling you have to go, you sit there looking at the clock and see you have an hour to go, and it intensifies. I'm not going to sit there and be miserable." The company is holding its ground. "We feel our system provides reasonable breaks for all employees, and we're looking forward to explaining our position in detail next week at the hearing," said Stephanie Moritz, director of publications for Jim Beam, based in Deerfield, Ill. Jo Anne Kelley, the union local's president, has worked at the Jim Beam plant for 34 years. She said the policy is degrading and that company officials have told some workers that they should "practice" going to the bathroom every two hours at home on the weekends to put themselves on a schedule. "Basically, we're being asked to train our bladders and other organs to meet their needs, not ours," Kelley said. "Your bodily functions don't have a time clock." In its appeal, Jim Beam said its break policy "effectively balances the medical needs of employees with the company's need to maintain a productive workforce." (Adopted from Harvard Business Review, 2019). Items to Address: The following items should be evident in your case paper: Identify the key roles and organizational issues through a brief summary or introductory paragraph (this is not the abstract page).Integrate specific theories from the readings for the type of organization. You may use previous module readings when applying a specific structure/system. Provide your personal perspective on the case, applying theories, perspectives, and structures you along with alternatives that could be best integrated to address the participant’s concerns. Paper Requirements: The paper must be written using current APA format and must include a title page, an abstract, and a references list. These are not included in the word count.The paper must have a minimum of 1000 words and a maximum of 1,200 words. The case paper is short as you will apply your scenario in the following Discussion Board Forum assignment. The paper must be submitted as a Word document (.doc) it will be checked in SafeAssign upon submission.Do not use bullets or listing anywhere in the paper. References must be as follows: Merida, T. (2015). Christ-centered exposition: Exalting Jesus in 1 & 2 Kings. Nashville, TN: B&H Publishing Group. ISBN: 9780805496703. Scott, W. R. (2015). Organizations and Organizing: Rational, Natural, and Open Systems Perspectives. London, England: Routledge. ISBN: 9780131958937